Klein Market Summary – January 22nd, 2013

Klein Market Summary

January 22nd, 2013

Current Market Facts:

Technical Status  Confirmed Rally Beginning Week 4

Other Observations

The indices have continued higher, powering through options expirationLiquid leaders are continuing to hold up

Feel of the Market

Action remains robust as earnings unfold

Important Levels on Key Indices:



Last Close






Nasdaq 100




S&P 500








Market Interpretation:

Last week’s action continued to show overwhelming signs of institutional accumulation.  Money continues to flow into medical, financial, tech, and consumer groups.  Housing remains robust.  With leading stocks acting well and the indices trending higher, earnings will take center stage this week.  Earnings reports are not necessarily about reporting a greater number than expected.  There may be many acute reasons that stocks failed to impress in the fourth quarter, including the hurricane, weather, fiscal cliff, and election uncertainty.  Yet, stocks that issue forward guidance that exceeds expectations may have positive reactions in a market environment that is forward looking.

Joel’s Take:

Earnings reports are the immediate focus.  Stocks that have accelerating current earnings have historically been the biggest winners.  Leadership can change quickly during earnings, so it is important to be prepared and to act quickly, as the facts change.

With the market trend remaining strong, it remains a time to maintain exposure to stocks.  The market is not significantly extended, but it would not be unusual for it to pull back in coming weeks.  Balancing exposure to the market by adding gradually over time, at proper buy points is a good way to prepare for an eventual short-term correction or pullback.  It makes it likely that you won’t have much stock that is underwater.

  • The Klein Market Summary is a professional interpretation of the general stock market conditions that is updated on a weekly basis.  Joel T. Klein is the portfolio manager of the investment partnership Blue Diamond Capital, LP. He writes the summary using select technical and fundamental data.  The Klein Market Summary is not intended to provide investment advice of any kind, and is only provided for the entertainment of the reader.  It is typically updated Monday morning, weekly.  Please e-mail info@kleinasset.com, if you are interested in receiving this free weekly update.
  • Past performance is not a guarantee of future results.  Due to market volatility, a fund’s performance may fluctuate.  Current performance may be less than previous results.  An investment a hedge fund when redeemed, may be worth more or less than the original cost.  Information above is not a replacement for the Fund’s prospectus.  This webpage does not constitute any kind of offer or solicitation.  Additional information on investment objectives and policies is in the Fund’s prospectus.  Ask your representative for a prospectus.

About kleinmarketforum

Klein Asset Management, LLC, formed in 2003, serves individual investors via a directional growth stock approach. When the market is in an uptrend, the firm seeks to exploit investment opportunities. When the trend is down or neutral, assets are protected. Klein Asset Management undertakes major market research projects. In many cases, these result in improved investment methods, which ultimately improve performance.

2 responses to “Klein Market Summary – January 22nd, 2013”

  1. Rosella says :

    Well I definitely enjoyed reading it. This

    subject provided by you is very helpful for

    accurate planning.

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